ISLAMABAD: The chairman of the Federal Board of Revenue (FBR) has directed officials to draft a time-bound procedure for speeding up the processing and issuance of income tax refunds, following a request from the Karachi Tax Bar Association.
FBR Chairman Rashid Mehmood Langrial issued the directive during a meeting with KTBA office-bearers at the FBR office, where senior representatives of both sides discussed taxation, policy and operational matters affecting taxpayers and practitioners, according to a KTBA statement.
KTBA President Mehmood Bikiya welcomed the FBR's initiative to engage regularly with the association.
The talks focused on facilitation of resident and non-resident taxpayers. The KTBA stressed the need for timely income tax and sales tax refunds, saying compliant taxpayers currently have little visibility on when excess taxes will be refunded. The chairman directed relevant officials to draft a time-bound refund procedure, the association said.
The bar also told the FBR that many taxpayers had applied to revise their returns to claim refunds of tax paid under section 7E, but those applications remain pending. It urged that instructions issued through a letter dated Sept. 23, 2026, be implemented in letter and spirit.
On foreign investment, the KTBA said procedural requirements should be streamlined, applied in accordance with the law and made less burdensome where appropriate. It added that non-resident taxpayers should not face compliance obligations not expressly prescribed by law.
The association also raised practical concerns about Sales Tax General Order No. 25/2026, which requires registered persons to issue a prescribed stock transfer note when moving goods between taxpayers' premises. FBR officials acknowledged the concerns and said they would examine the matter through internal consultations.
The chairman also acknowledged the difficulties businesses face while their equipment and records remain in custody, and stressed that such items should be released at the earliest opportunity, the KTBA said.
The KTBA further called for due process before initiating coercive recovery measures for advance income tax, asking that taxpayers be given a reasonable opportunity and sufficient time to comply.
The bar also pointed to delays in issuing return-related notifications, persistent problems on the IRIS portal and difficulties uploading bulk data.
